Network financing with two-part and single tariff ∗

This paper compares two types of access pricing: a two-part tariff where the fixed part aims to cover (part of) the network’s fixed cost and the variable part covers the network’s usage costs and a single tariff where both the usage and (part of) the infrastructure costs are covered by a per-unit access charge. It compares how the regulator trades-off the degree of competition induced by the access charges and the network financing